Could German vote undo Draghi effect?

Friday, September 07, 2012 - 01:51

Sept. 7 - What happens if the German Constitutional Court votes ''nein'' to Germany's participation in the esm rescue fund?

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Well this would be a -- -- for for them with sentiment them do you believe given that -- the consensus she was clearly has. That they went down. When I'm bored and pay what it. So it and that's and that's scenario also wounds would -- would really really event down. Ground spreads and improve through use would come significant oppression what I expect is that they will agree with ESM. But that they will give the German parliament the biggest say in future -- Out and with future actions off the SM 12100 no I don't think the very few people think everything's -- be that clear cut but I mean if they -- just be a parent and have known and I think cutesy peripheral bond spreads blowing out what will happen I think -- suspect is that sun. Every new request full IE to have to go through a vote in the -- in parliament I think it's the constitutional -- does not. Then I think all bets are off with respect to the right. Suddenly we don't think it's it's is going to be the end of the -- is meant to you that maybe it's gonna be. Implemented at some point -- just means it will be a long looks well -- little drawn out crisis was remarkable suddenly you react negatively tools. Basically means to the drawing board so far are as the Euro zone is concerned that she would of course put more pressure on. The yen on the ECB to to begin serving in the short term but I think in the longer term. And it raises questions about the commitment of some of the cold -- -- -- EU and of course that's gonna be reflected in in market pricing. Well that certainly would be very serious because and B we -- back to the drawing board via some would be declared. Unconstitutional in Germany which of course means that it would be still on -- soaring bold which would mean that the safety net -- looking ample Spain. I'm possibly could be just simply isn't as an obese very negative indeed for personal Marcus and overseas support.

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